German Court Rules Against Banks on Unauthorized Account Fees

The Federal Court of Justice strengthens customer rights in refund disputes over unauthorized bank fees.

The Federal Court of Justice (BGH) ruled that banks cannot retain fees charged without active customer consent, even if payments were made without objection for over three years.
The ruling follows a 2021 decision declaring 'consent-by-silence' clauses invalid, which many banks used to justify fee increases without explicit customer approval.
The court's decision overturns a lower court ruling that applied a three-year limitation, which is used in energy contracts, to bank fee disputes.
The case involved a customer who was charged fees from 2018 without consent and sought a refund after objecting in 2021; the court awarded a full refund of €192.
Despite the favorable ruling for consumers, a survey indicated that only 11% of affected customers have pursued refunds, allowing banks to retain most disputed fees.